Citing "three people familiar with the matter," various media reported that NFC enabled smartphones will be available soon from Sprint, the third-largest US wireless operator.
Using an NFC enabled smartphone, users can pay at NFC-equipped cash registers by flicking the phone on e-readers. The NFC technology makes smartphones to electronic wallet, letting users to pay for goods and redeem coupons. The new system will be available on the recently launched Samsung Nexus S smartphone.
Initially, Google will roll out the service in five cities, New York, San Francisco, Los Angeles, Chicago and Washington, DC, and plans to extend to other parts of the world.
Earlier, Google teamed up with MasterCard Inc and Citigroup Inc for the development of NFC technology. Also, Google made alliance with credit-card reader maker ViVOtech Inc and VeriFone Systems for making contact-less readers to access Citigroup issued debit and credit cards.
The new NFC technology will help Google to widen its mobile advertising business. NFC allows Google to offer retailers more data about their customers and retailers can pump more target oriented ads and discounts.
This new technology will also help users to manage their accounts and track spending. User targeted ads help users to get more discounts, coupons and loyalty points. Moreover, the new system will help app developers to invent new apps for different NFC services.
It is expected that Google will bring the new NFC system to more Android smartphones, as its rival Apple also plans to introduce a similar payment technology in the upcoming iPhone 5.